Climate Contract Playbook Edition 3
187
[Luna’s clause]
The Origin Story
Child’s name
Luna’s clause
Full name
Green Project Modifications
Practice Area / Sector
Construction
Greener construction solutions exist, yet building contractors are not incentivised to provide greener solutions to project design or construction processes once a project has commenced. Contractors are however, typically incentivised to provide solutions which present value for money to the Employer in the short term (i.e. innovations in the construction process which reduce the Contract Sum). A clause that incentivises building contractors to propose ‘Green Modifications’ to the project works, which will benefit the Employer, the overall Project and the environment into the future. These clauses seeks to tie the incentives of providing a greener solution to long term reduced energy costs of the completed project and to green financing. Construction contracts typically include the ability for the Contractor to propose a Modification to the contracted works, where that modification results in a cost saving or other improvement. Construction contracts do not typically allow or incentivise Contractors to provide a more sustainable construction solution (i.e. using recycled materials, more energy efficient completed projects, less waste), as the reduction of costs of construction is paramount and the long term savings and impact on the environment is not a consideration for the construction contract.
Issue
Solution
Context
The proposed clause will allow a contractor to propose a green variation to the project works, thus reducing the impact on climate change and the environment in the long term. Employers will benefit from reduced long term energy consumption/emissions/ financing costs, as may be applicable.
Impact
The key stakeholders that you think need to be engaged to deliver this Impact: 1. Procurement teams 2. Contract managers 3. Sustainability managers 4. Precedent and know how providers 5. Professional support lawyers 6. Private practice firms 7. Construction firms and contractors
Stakeholders
The clause is intended for inclusion in construction contracts. This clause compliments Mary’s clause from the 1st Edition of the Playbook.
Application
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